Gold Bulls Resting Up For Next Upside Assault
(Kitco News) - Gold prices are trading near unchanged in early U.S. trading Thursday. This week’s pause, or sideways trading on the daily chart, is normal given the solid gains scored last week. Bulls appear to be readying for their next upside advance. December gold futures were last up $0.40 an ounce at $1,227.90. December Comex silver was last down $0.103 at $14.56 an ounce.
Global stock markets were mixed overnight, with European stock indexes mostly firmer and Asian indexes mostly lower. U.S. stock indexes are pointed toward weaker openings when the New York day session begins.
Traders and investors are awaiting the results of a Turkish investigation into the disappearance of a Saudi journalist. The Turks say the journalist was killed and the Saudis deny knowing anything about it. This matter is likely to come to a head in the next few days, with President Trump saying results of the investigation are likely yet this week. If the Saudis are complicit, ramifications for the world markets will be significant. Some press reports say the Saudis killed the journalist.
U.S. Treasury bond yields are on the rise again following FOMC minutes released Wednesday afternoon that were deemed a bit hawkish on U.S. monetary policy.
The key outside markets today find the U.S. dollar index slightly lower on a corrective pullback from Wednesday’s solid gains. Meantime, November Nymex crude oil prices are lower, hit a four-week low and are trading below $69.00 a barrel. Brent crude oil has now fallen below the $80.00-per-barrel level. Rising U.S. oil stockpiles this week are bearish for the oil market.
U.S. economic data due for release Thursday includes the weekly jobless claims report, the Philadelphia Fed business survey, and leading economic indicators.
Technically, gold bulls have the near-term technical advantage and their next upside price objective is to produce a close in December futures above solid resistance at $1,250.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,200.00. First resistance is seen at this week’s high of $1,236.90 and then at $1,240.00. First support is seen at this week’s low of $1,220.40 and then at $1,215.00. Wyckoff's Market Rating: 6.0
December silver futures bears still have the overall near-term technical advantage. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $15.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at the September low of $13.965. First resistance is seen at the overnight high of $14.655 and then at this week’s high of $14.88. Next support is seen at the overnight low of $14.47 and then at the October low of $14.255. Wyckoff's Market Rating: 3.0.